As savvy investors know, dividend-paying stocks far outperform non-dividend-paying stocks over the long term. This means that every long-term investor should own at least one dividend-paying stock, and depending on your age, investment goals, and risk tolerance, maybe even a diversified portfolio full of them. With this in mind, let’s take a look at three real estate investment trusts, or REITs, with yields of up to 9% that you should consider buying today.
1. Dream Office REIT: 9% yield
Dream Office REIT (TSX:D.UN) is one of the largest owners and operators of office buildings, with over 24.1 million square feet of “attractively priced business premises in urban centres across Canada.” It pays a monthly dividend of $0.19 per share, or $2.24 per share annually, giving its stock a 9% yield at today’s levels. Investors should also note that the company has maintained this monthly payment since May 2013, and its consistent funds from operations could allow it to continue to do so for the next several years.
2. H&R Real Estate Investment Trust: 6.1% yield
H&R Real Estate Investment Trust (TSX:HR.UN) is one of the largest open-ended real estate investment trusts in North America, with over 315 commercial, industrial, and residential properties in its portfolio. It pays a monthly dividend of $0.11 per share, or $1.35 per share annually, giving its stock a 6.1% yield at today’s levels. It is also worth noting that H&R has maintained this monthly payment since May 2013, but its increased amount of funds from operations could allow for an increase in the very near future.
3. Canadian Apartment Properties REIT: 4.5% yield
Canadian Apartment Properties REIT (TSX:CAR.UN) is one of Canada’s largest residential landlords, with over 41,500 residential units. It pays a monthly dividend of $0.10 per share, or $1.22 per share annually, giving its stock a 4.5% yield at today’s levels. The company has also increased its annual dividend payment for four consecutive years, and its increased amount of funds from operations could allow this streak to continue for another four years at least.
Which REIT should you buy today?
Dream Office, H&R, and Canadian Apartment Properties are three of the top real estate investment trusts in the market today. Foolish investors should take a closer look and strongly consider establishing positions in one of them.
Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Joseph Solitro has no position in any stocks mentioned.